Apria, Rotech rack up losses
LAKE FOREST, Calif. - Apria Healthcare on Nov. 4 reported net revenues of $584.9 million for the three months ended Sept. 30, 2011, compared to $526 million for the same period last year. It reported a net loss of $4.7 million vs. $100,000.
"We feel we had a strong quarter, as we move step by step," Chris Karkenny, executive vice president and chief financial officer, told investors during an earnings call. "There have certainly been some challenges, but we are proud of what we've accomplished this quarter."
The provider reported net revenues of $1.7 billion for the nine months ended Sept. 30, 2011, compared to $1.55 billion for the same period last year. It reported a net loss of $35.1 million vs. a net income of $2.4 million.
Apria has its home infusion segment to thank for increased revenues so far this year, and Karkenny credited the provider's national platform and "patient first" mentality for its growth in this area.
"We have innovative clinical programs surrounding improved outcomes and reduced spending," he said. "That's really helping our commercial payers and managed care partners. We also have a strong use of technology with field folks that keeps us ahead of the competition."
Increases were offset by non-renewal or termination of, or changes to, certain contracts.
"We continue to focus on our contracting," said Karkenny. "There are a lot of discussions with our existing customers, but then we are looking to get additional customers, too. We hope to win more than we take hits on."
Also during the third quarter, Apria completed hiring and training billing and collections staff--an about face from 2009 when the provider moved much of its billing and collection functions to India.
"We've decided to bring back a big chunk of that," Karkenny said. "We know the simple tasks that don't involve the human touch--our offshore partner has done a good job on that. We will continue to look at areas where we can leverage those processes that are conducive to off-shoring."
In its earnings report, Apria also stated that it has increased its borrowing capacity from $150 million to $250 million.
Additionally, the provider reported $171.2 million in savings as of Sept. 30, 2011, with an expected $181.3 million in savings by the end of the year.
Rotech blames neb med reimbursement for losses
ORLANDO, Fla. - Rotech Healthcare this week reported net revenues of $122.8 million for the third quarter this year compared to $125 million for the same period last year. It reported a net loss of $1.7 million vs. a net income of $2.5 million.
The provider reported net revenues of $366.8 million for the nine months ended Sept. 30, 2011, compared to $372.7 million for the same period last year. It reported a net loss of $6.3 million vs. $600,000.
Rotech stated that decreases in nebulizer medication reimbursement and volume reduced net revenues by $2.8 million and $9.4 million for the third quarter and the nine months ended Sept. 30, respectively. Additionally, the provider stated that competitive bidding rate reductions, among other changes in Medicare reimbursement, reduced net revenue by $3.3 million and $7.2 million respectively.
Still, Rotech stated it's growing. The provider reported that revenue generating patients, including patients from equipment and asset purchases in the core product lines of oxygen and CPAP, have grown 13.4% so far this year compared to last year.
Rotech expects those purchases to really start paying off next year.
"Equipment and asset purchases continue to be part of the growth plan going forward and are anticipated to be meaningful as we enter 2012," stated President and CEO Philip Carter.